| The purpose of intraday trading is to register small | | | | momentum and will come into limelight, be away from |
| profits which can be average out at the end of | | | | such stocks they do not have any volatility only once |
| market sessions. Investor need not wait to book the | | | | in a year or so they become active, such stocks |
| profits only when there is considerable difference | | | | have volatility of only few minutes, again they will |
| between the last traded prices. Thus book the | | | | disappear. |
| profits even at the minimum level. They need to do | | | | Not only the price volatility to be observed there are |
| buying and selling on marginal profits; it should not be | | | | many such stocks that may not have so much |
| the situation of the overbought or oversold. | | | | fluctuation in price, but they are traded in volumes, |
| Choose those stocks where there is huge volatility, | | | | an investor can book profits on trading on large |
| which means look for stocks which are sensitive to | | | | volumes at a small price thus the profits can be |
| the price volatility, thus the movement of up and | | | | averaged at the end of the session. A perfect |
| down of a share price should be high, they should not | | | | example is Reliance; it is the most traded stock in |
| be slow moving stocks and momentum should be | | | | terms of volumes. Investors' trade heavily in volumes |
| there every time. The rate should be so high so that | | | | with such stocks, however such stock may not have |
| the intraday trading can take place and then only | | | | price volatility, but they are still favourites among the |
| aggressive buying and selling will takes place. Such | | | | intraday traders. |
| stocks are very sensitive to the daily rumours and to | | | | One important point to be considered that investor |
| the news, these are the most traded stock but it | | | | need to be realistic, it may not happen that the |
| may not be necessary that they belong to the blue | | | | investors are every time booking profits, even if |
| chip companies only, you can find such stocks in the | | | | they are into loss they should understand how to |
| mid cap section too. Some penny stocks also have | | | | control such losses and should opt for the stop loss |
| big price fluctuation range. An investor need to be | | | | order and they should considered as to how much |
| cautious that there are many stocks which are quiet | | | | capital they are committed to put at stake in the |
| for some time on the market and suddenly they gain | | | | market. |